A former senior financial executive at Adelphia Communications Corp. cut a
deal with prosecutors and agreed to testify against his former bosses, the Rigas
James Brown, Adelphia's former vice president of finance, pleaded guilty to
federal charges of bank fraud, securities fraud and conspiracy to defraud. Brown
-- who was the key contact of bankers and Wall Street analysts at the company --
acknowledged lying about Adelphia's financial condition and customer counts in
financial statements, presentations to investors and specifically a January
meeting with debt rating service Moody's Investors Service.
Speaking before U.S. District Judge Leonard Sand Thursday, Brown said, 'I
knew that making such misstatements would mislead analysts who follow the cable
industry, as well as investors.'
Brown could get up to 30 years in prison, but he will
likely get a far lesser sentence for his cooperation.